Sensex closes at record high of 21,034

Sensex closes at record high of 21,034

The all-time closing high for Sensex was 21,004, last hit on November 5, 2010.

A day ahead of the word on US Federal Reserve's 85 billion-a-month bond buying program also known as QE3, Indian stock market was fuelled by what could be its last inflow of foreign liquidity if Fed decides to give a Diwali cracker and chooses to announce a date for tapering QE3, earlier than what is expected.

Analysts however agree this will not be the case as US Fed will be looking for more tangible signs of an economic recovery. However, analysts widely believe that tapering will not begin until March 2014.

The October government shutdown is also believed to have slowed down the economy in Q4. "It will be 2014 before we are able to see a number of months of economic data that may convince the FOMC that the recovery is continuing at a solid pace," said Rabobank Financial Markets, earlier.

Sensex closes at record high of 21,034

"QE3 will continue until at least December and maybe till march 2014. Effect on global markets should be bullish in the short run," said Devangshu Datta, Independent Technical Analyst and market expert.

Investors will however tread on cautious grounds as they will read into the fine print of FOMC statement to look for possible clues for a final direction on tapering of QE3 which is fuelling stock market rallies in emerging markets such as India. All this will have a bearing on equity markets pan out going ahead.

Market is expected to remain volatile tomorrow as Indian investors mull over taking or rolling over positions into November series F&O contracts.

After being rangebound for better part of the day key indices surged higher in noon trades and closed at record high levels led by buying in heavyweights on Wednesday.

Sensex closes at record high of 21,034

The 30-share BSE Sensex added 105 points to close at its all-time closing high levels of 21,034 and the broader NSE Nifty advanced 31 points to trade at 6,251, which is a three year high for the indices.

The all-time closing high for Sensex earlier was 21,004, last hit on November 5, 2010.

In the broader markets, the midcap and smallcap indices gained between 0.2% - 0.6%.

Among sectors, healthcare, FMCG, power, realty gained while auto and PSUs were only losers.

At 4:25 pm the rupee was trading was at 61.20-a-dollar compared with previous close of Rs 61.32 per dollar. Currency dealers see the rupee trading in the range of Rs 61.30 to 62.50 for the rest of the day.